Starting in June it will become possible to spread out payments over four decades.Image: Henrietta Hassinen / YleYle News13.5. 13:21Starting next month, mortgage borrowers will have the option of taking out 40-year home loans, reducing their monthly payments to the bank.Up until recently, Finland had a 30-year mortgage cap.While the extended term comes with lower monthly payments, there will be more interest to pay over the life of the loan.A 40-year loan of 200,000 euros at a three-percent interest rate, for example, will mean the payments are some 230 euros less per month.However, when compared with a more typical 25-year loan, the longer-term loan's total interest is around 66,000 euros more.Banks say the lower monthly payments give households more flexibility and room to invest, but financial regulators are sounding the alarm on potential overindebtedness.The Financial Supervisory Authority has said 40 years is too long, warning that many things can happen over such a lengthy timeframe — unemployment, divorce and costly renovations.Earlier this spring, the government said that allowing borrowers to stretch out mortgages aimed to boost housing sales, consumption, while encouraging people to save for the future.The Bank of Finland's senior adviser Jukka Vauhkonen has, however, voiced skepticism about the mortgage rule changes' supposed positive effect on accelerating household savings and investments.Yle News' All Points North podcast asked if it's time to rent or buy after years of falling housing prices in Finland.